Comverge Announces First Quarter 2008 Results and Reaffirms 2008 Revenue Outlook
557 Megawatts Under Management Added in First Quarter
EAST HANOVER, N.J., April 22, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Comverge, Inc. (Nasdaq: COMV), a leading clean capacity provider through demand response and energy efficiency, announced today its first quarter operating results for 2008. These results demonstrate continued rapid expansion in the growth of Comverge's demand response and energy efficiency business.
New contract awards in 2008 reinforce the strength of Comverge's continued success in the demand response and energy efficiency sectors by providing comprehensive offerings to all customer classes. These new contracts include Comverge's largest pay-for-performance energy efficiency contract in terms of potential revenues, first pay-for-performance Virtual Peaking Capacity(R) ("VPC") demand response program for a co-op utility, and expansion of its largest pay-for-performance contract in terms of megawatts. This contract diversity bodes well as it demonstrates better customer and regulator awareness and acceptance for Comverge's demand response programs.
"Comverge has added 557 megawatts in our first quarter, of which 162 megawatts are in new long-term pay-for-performance contracts and the remaining in megawatts managed and offered into open markets," said Robert M. Chiste, Chairman, CEO and President of Comverge. "We are pleased by our rapid growth as demonstrated by new contracts signed in the first quarter, and we are confident that we continue to significantly further increase shareholder value.
"Demand response has emerged as an important sector of the energy industry and has proven its exceptional value to utilities and regulators in major deployments throughout the country. Since we are in the early years of a nascent industry, and as regulatory initiatives for demand response markets and utility buying patterns continue to evolve, we believe that quarterly revenue may continue to be uneven. However, as evidenced by Comverge's significant increase in megawatts and long-term contracts, we are confident that the year over year growth of the demand response and energy efficiency markets will continue to remain robust. In light of our progress in the first quarter and our expectations for the remainder of the year, we are reaffirming our revenue expectations for full year 2008 revenues in the range of $95 million to $105 million."
Business Highlights:
Comverge first quarter business highlights include:
-- Awarded a VPC contract with Southern Maryland Electric Cooperative to
provide up to 75 megawatts of contracted capacity for which regulatory
approval was received on April 15th;
-- Awarded a $67 million demand side management energy efficiency contract
with Consolidated Edison, with regulatory approval, aimed at reducing
base load energy requirements of commercial customers;
-- Awarded a 20 megawatt expansion of our VPC contract with Nevada Power,
making it our largest VPC contract awarded at 143 megawatts;
-- 66% increase in contracted future revenues from $195 million to
$324 million year-over-year;
-- 74% increase in contracted capacity, as measured in megawatts under
long-term capacity contracts, from 369 to 641 megawatts year-over-year;
-- Added 557 megawatts under management during the first quarter of 2008;
-- Total megawatts under management are:
Megawatts under long term contracts, with regulatory approval 641
Megawatts under open market programs 803
Megawatts managed for a fee 437
Total megawatts 1,881
Financial Summary:
First quarter revenues for 2008 were $10.5 million, an 82% increase compared to $5.7 million in the first quarter of 2007. Revenues for the first quarter of 2008 include $5.8 million from our Enerwise and Public Energy Solutions groups, which were acquired in the third quarter of 2007. Revenues for both periods do not include revenues from our residential VPC contracts, which are deferred and recognized in the fourth quarter.
Adjusted EBITDA loss for the first quarter of 2008 was $6.3 million compared to an Adjusted EBITDA loss of $4.0 million for the first quarter of 2007. Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, and non-cash stock compensation expense (see Schedule 4 - Reconciliation of Non-GAAP Financial Measure to the Most Directly Comparable GAAP Financial Measure).
Net loss for the first quarter 2008 was $8.8 million, or $0.42 per share, basic and diluted, compared to a net loss of $4.5 million, or $1.25 per share, basic and diluted for 2007. All share and per share amounts reflect the one-for-two reverse stock split affected as part of our initial public offering in April 2007.
Recent Developments:
As discussed in greater detail in our Form 10-Q filed today with the Securities Exchange Commission, our Enerwise Group's revenues from economic demand response programs in PJM Interconnection (PJM) in the first quarter of 2008 were negatively impacted by changes in business rules that PJM formally filed with FERC in April of 2008. These rules are currently under review. Since we have megawatts of load under contract in these broad markets, our goal is to place these megawatts into the most lucrative available market or program.
As of the filing date of this release, we have 771 megawatts under long-term contract, which will contribute to expect contracted future revenues of $398 million. Of these amounts, 130 megawatts of capacity under long-term contracts representing an expected $74 million in contracted revenues, are still awaiting regulatory approval. In the event we receive regulatory approval on these 130 megawatts, and including new megawatts acquired in open market programs this quarter, our total megawatts managed will be 2,011 megawatts.
Additional Information:
Comverge will discuss these results for the first quarter 2008 in a conference call scheduled today at 10:00 a.m. EDT. To participate in the call dial 877-397-0300 (719-325-4910 for international) and indicate your intention to join the call.
An audio replay of the call will be available beginning today at 3:00 pm EDT until May 20, 2008 at 12:00 am EDT, (midnight) by dialing in 888-203-1112 (719-457-0820 for international) and using conference code number 4917614. Additionally, the results will be reported by webcast and available online in the Comverge investor relations section at http://ir.comverge.com. This webcast will be available online and archived on Comverge's website until June 30, 2008 at 12:00 am EDT.
Additional financial information on Comverge can be found in the Company's Quarterly Report on Form 10-Q for the quarter-ended March 31, 2008, which has been filed today with the Securities and Exchange Commission.
About Comverge
Comverge is a leading provider of clean energy solutions that improve grid reliability and supply electric capacity on a more cost effective basis than conventional alternatives by reducing base load and peak load energy consumption. For more information, visit www.comverge.com.
For Additional Information
Investor Relations
Michael Picchi
EVP - Chief Financial Officer
770-696-7660
invest@comverge.com
Christina Kelly
Communications Marketing Manager
Comverge Inc
509-435-6341
ckelly@comverge.com
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